AUD/USD analysis: at daily lows, but still in range
AUD/USD Current price: 0.7380
- Aussie pressured by mixed equities, falling base metals.
- Australian Q2 PPI seen up 0.7% YoY vs. the previous 1.7%.
The AUD/USD hit 0.7463 at the beginning of the day on the back of receding trade war concerns, but was unable to hold on to gains, and fell all the way down to the lower end of its weekly range, barely holding above the 0.7370 support at the end of the US session. The dollar strengthened after ECB's Draghi confirmed that rates will remain at record lows in the Union at least until September 2019, highlighting the imbalances between the Fed, which remains alone in the tightening path, and the rest of the major central banks. Base metals eased after Wednesday's recovery, while equities were mixed, adding pressure on the Aussie. Australia will release its Q2 PPI during the upcoming Asian session, seen up 0.7% YoY vs. the previous 1.7%. The short-term picture is bearish, although still longer-term range bound, as in the 4 hours chart, the pair is back below its moving averages, while technical indicators heading sharply lower in negative territory. The pair could extend its decline down to the 0.7300 region on a break below 0.7370, where buyers have been defending the downside for over a month, which means large stops could be placed right below the figure and if triggered, result in a stronger downward move.
Support levels: 0.7370 0.7330 0.7300
Resistance levels: 0.7445 0.7490 0.7520
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
